Taiwan stocks are rallying as the AI trade spreads from Nvidia-style GPUs to custom chips, a big win for Taiwan's chip designers, foundries and packaging firms.

• Custom-chip (ASIC) designer Global Unichip hit limit-up at a record high, and Taiwan's index jumped past 47,000 as money poured back into AI stocks after the Fed's rate hike.
• Taiwan chip revenue is up over 60% from a year ago, with ASIC design services growing fastest, making custom chips the industry's main growth engine.
• The world's biggest cloud companies are set to spend over a trillion dollars a year on data centers by 2027, and Nvidia, AMD and Broadcom expect data-center sales to grow over 50%.
• TSMC's advanced CoWoS packaging capacity is expected to grow sharply through 2027, so packaging, testing and probe-card suppliers with proven customers should benefit most.
• Risks: high Fed rates weigh on pricey growth stocks, US election politics add uncertainty, and each supplier's orders and revenue timing differ.

Outlook: AI custom-chip demand should keep Taiwan's chip supply chain strong into 2027, but expect short-term swings from rates and US politics.